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Stock Compensation Plans | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock Compensation Plans | 13) Stock Compensation Plans The Company has three stock compensation plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Equity Incentive Plan”). Stock Options Stock based compensation expense for stock options issued of $929,321 and $118,384 has been recognized under these plans for the years ended December 31, 2022 and 2021, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2022, the total unrecognized compensation expense related to the stock options issued was $506,701, which is expected to be recognized over the vesting period. The fair value of each stock option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant. The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted. Schedule of Assumptions Used
|  |  |  |  |  |  | Assumptions |
Grant Date |  | Plan |  | Weighted-Average Fair Value of Each Option |  |  | Expected Dividend Yield (1) |  |  | Underlying stock FMV |  |  | Weighted-Average Volatility |  |  | Weighted-Average Risk-Free Interest Rate |  |  | Weighted-Average Expected Life (years) |
December 2, 2022 |  | All Plans |  | $ | 1.48 |  |  |  | 5 | % |  | $ | 6.48 |  |  |  | 37.03 | % |  |  | 3.69 | % |  |  | 4.88 |
December 3, 2021 |  | All Plans |  | $ | 2.99 |  |  |  | 5 | % |  | $ | 8.62 |  |  |  | 36.50 | % |  |  | 1.15 | % |  |  | 5.31 |
(1) |  | Stock dividend
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 13) Stock Compensation Plans (Continued) Activity of the stock option plans is summarized as follows: Schedule of Activity of Stock Option Plans
|  | Number of Class A Shares |  |  | Weighted Average Exercise Price |  |  | Number of Class C Shares |  |  | Weighted Average Exercise Price |
Outstanding at January 1, 2021 |  |  | 1,072,863 |  |  | $ | 4.12 |  |  |  | 662,666 |  |  | $ | 4.50 |
Adjustment for the effect of stock dividends |  |  | 47,594 |  |  |  |  |  |  |  | 33,136 |  |  |  |  |
Granted |  |  | 89,500 |  |  |  |  |  |  |  | 230,000 |  |  |  |  |
Exercised |  |  | (183,935 | ) |  |  |  |  |  |  | (104,656 | ) |  |  |  |
Cancelled |  |  | (1,671 | ) |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at December 31, 2021 |  |  | 1,024,351 |  |  | $ | 4.38 |  |  |  | 821,146 |  |  | $ | 5.26 |
Adjustment for the effect of stock dividends |  |  | 47,780 |  |  |  |  |  |  |  | 41,057 |  |  |  |  |
Granted |  |  | 82,500 |  |  |  |  |  |  |  | 295,000 |  |  |  |  |
Exercised |  |  | (176,435 | ) |  |  |  |  |  |  | - |  |  |  |  |
Cancelled |  |  | (1,591 | ) |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 976,605 |  |  | $ | 4.78 |  |  |  | 1,157,203 |  |  | $ | 5.59 |
Exercisable at end of year |  |  | 897,105 |  |  | $ | 4.63 |  |  |  | 862,203 |  |  | $ | 5.26 |
Available options for future grant |  |  | 132,313 |  |  |  |  |  |  |  | 795,000 |  |  |  |  |
Weighted average contractual term of options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
outstanding at December 31, 2022 |  |  | 4.72 years |  |  |  |  |  |  |  | 6.90 years |  |  |  |  |
Weighted average contractual term of options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
exercisable at December 31, 2022 |  |  | 4.26 years |  |  |  |  |  |  |  | 6.24 years |  |  |  |  |
Aggregated intrinsic value of options outstanding at December 31, 2022 (1) |  | $ | 2,460,755 |  |  |  |  |  |  | $ | 1,979,588 |  |  |  |  |
Aggregated intrinsic value of options exercisable at December 31, 2022 (1) |  | $ | 2,397,275 |  |  |  |  |  |  | $ | 1,758,488 |  |  |  |  |
(1) |  | The Company used a stock price of $7.30 as of December 31, 2022 to derive intrinsic value.
The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the years ended December 31, 2022 and 2021 was $619,064 and $1,153,417, respectively. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 13) Stock Compensation Plans (Continued) Restricted Stock Units (“RSUs”) Stock based compensation expense for RSUs issued of $371 and nil has been recognized under these plans for the years ended December 31, 2022 and 2021, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2022, the total unrecognized compensation expense related to the RSUs issued was $742, which is expected to be recognized over the vesting period of three months. The fair value of each RSU granted is determined based on the Company’s stock price on the date of grant. The weighted average grant date fair value of RSUs granted on December 2, 2022 was $6.48. Activity of the RSUs is summarized as follows: Schedule of Activity Restricted Stock Units
|  | Number of Class A Shares |  |  | Weighted Average Grant Date Fair Value |
Non-vested at December 31, 2021 |  |  | - |  |  | $ | - |
Granted |  |  | 1,620 |  |  |  | 6.48 |
Vested |  |  | - |  |  |  |  |
Non-vested at December 31, 2022 |  |  | 1,620 |  |  | $ | 6.48 |
Available RSUs for future grant |  |  | 18,380 |  |  |  |  |
Aggregated intrinsic value of RSUs outstanding at December 31, 2022 (1) |  | $ | 1,328 |  |  |  |  |
(1) |  | The Company used a stock price of $7.30 as of December 31, 2022 to derive intrinsic value.
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021

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